Chongqing Steel to complete Australian mine acquisition in August

Monday, 09 August 2010 17:33:15 (GMT+2)

On August 6, Liu Jiacai, general manager of Chinese steelmaker Chongqing Iron and Steel, stated the transaction for the company's acquisition of an Australian iron ore mine will be completed within the current month.

As previously reported by SteelOrbis, in November last year Chongqing Minerals Development and Investment Co., Ltd signed a framework agreement with SINOM (Hong Kong) Limited and its wholly-owned subsidiary Asia Steel Holdings Limited - the latter being the owner of the iron ore mine in question. According to the deal, Chongqing Steel will invest US$258 million (RMB 1.75 billion) in Asia Steel and will receive 60 percent of Asia Steel's additional shares.

Meanwhile, also on August 8, Chongqing Steel signed a framework agreement with Xichang municipal government to expand Taihe iron mine, an asset of Chongqing Steel located in the southwestern Chinese city of Xichang, from an annual output of 2 million mt to 6.3 million mt.

Chongqing Steel official previously stated that, after expansions and acquisitions, the company expects to be self-sufficient in iron ore supplies by 2012, and thus will not be influenced by the overseas iron ore giants.

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